Dynacor Gold Mines Inc., wholly-owned subsidiary of Malaga Inc., raises CA$4 million

    Malaga Inc. (Malaga)
    Symbol: MLG
    Toronto Stock Exchange

    MONTREAL, Aug. 9 /CNW Telbec/ - Malaga is pleased to announce that
Dynacor Gold Mines Inc. ("Dynacor"), currently a wholly-owned subsidiary of
Malaga, has recently completed the closing of a CA$4 million financing, the
proceeds of which are being held under escrow until the common shares of
Dynacor are listed on a recognized Canadian exchange. D&D Securities Company
of Toronto, Ontario, acted as lead agent in this transaction. The funds will
be used by Dynacor to undertake the exploration and drilling programs planned
for fall 2007. The work will be done mainly on the Tumipampa and Casaden


    Malaga is working diligently toward the spin-off of its gold assets into
a new public company, namely Dynacor. The new company will hold all of the
gold assets including the Acari mill, from which gold is produced through
custom milling, as well as the Casaden and Tumipampa properties.
    Malaga expects the filing of the preliminary prospectus of Dynacor to be
completed within the next upcoming days. The spin-off of its gold assets to
Dynacor is expected to be completed soon thereafter. A follow-up press release
will then be issued announcing the declaration of a stock dividend and the
distribution date for the distribution of the shares of Dynacor to the
shareholders of Malaga.


    Malaga is a mining company, which owns and operates through its
subsidiaries, a tungsten mine and gold plant with mining and exploration
activities focused in Peru. It holds 100% interest, and operates the Pasto
Bueno tungsten mine. In addition, the Company holds 44% interest in the
Peruvian company called Hidroelectrica Pelagatos. This corporation operates
the hydroelectric potential of the Pasto Bueno property.
    Malaga focuses on efficient and productive mining practices, in order to
optimize current operations. The Company is committed to growth, through
increasing its production levels, continuing exploration projects on existing
properties and through strategic acquisitions. It also seeks diverse growth
opportunities such as the hydroelectric potential through Hidroelectrica

For further information:

For further information: Marc Blais, President, Malaga Inc., (450)
922-6199; Jean Martineau, Chairman of the Board & CEO, Malaga Inc., (450)
667-3224; Christina Lalli, Investor Relations, Malaga Inc., (450) 922-6199;
Renmark Financial Communications Inc.: Barbara Komorowski,
bkomorowski@renmarkfinancial.com; Tina Cameron, tcameron@renmarkfinancial.com;
Media - Vanessa Napoli, vnapoli@renmarkfinancial.com; (514) 939-3989, Fax:
(514) 939-3717, www.renmarkfinancial.com

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